College health insurance doesn't meet needs

It's become common practice for colleges to require students to purchase their health insurance plan. According to an investigation by the New York Attorney General's office, these school-sponsored healthcare plans often avoid state regulations, pay out less in benefits than they collect in premiums and rip off students.

New York AG Andrew Cuomo subpoenaed 10 student health insurers and five insurance agents, brokers and consultants for the investigation. Cuomo also sent a letter to more than 300 schools warning them about the shady health insurance plans.

The investigation found that a good number of these school-sponsored health plans cost more than what's provided, have low coverage limits and do not meet federal requirements.

Cuomo said that "many of the sponsored healthcare plans looked at during our investigation leave students at risk while providing massive profits for insurance companies," and that "by being informed of the problematic practices that currently exist in the industry, schools can negotiate for better health plans and students and their families can be better equipped to select the coverage that is best for them."

Nearly 1 million college students participate in school sponsored health insurance, which makes $1 billion a year.